The Man Who Predicted a 31% Market Crash — And His 3 Rules for Perfect Stock Entry
In October 1987, analyst Stan Weinstein predicted a 31% crash in global markets — before it even happened.
He wasn’t guessing — he was reading charts. Stan later wrote one of the most respected books on technical analysis.
Here’s what his method teaches us 👇
🔹 The 3 Rules of a Powerful Breakout
1️⃣ The longer the sideways range, the stronger the breakout. If a stock trades sideways for weeks or months, that consolidation builds potential energy. The longer it waits, the stronger the move.
2️⃣ During breakout, price must cross the 200-DMA with heavy volume. When both price and volume explode past the 200-DMA, that’s a true bullish signal.
3️⃣ Enter only when price stays above the 200-DMA. This confirms trend reversal — the stock has shifted from accumulation to breakout phase.
💡 Example — Zen Technologies
Price traded sideways for months.
Breakout came with volume jumping from 1.37M → 14.74M (≈14× rise).
Price stayed consistently above 200-DMA.
Result? A staggering +1131% return.
📈 Stan’s message: You don’t need to predict — you just need to read charts right.
⚡ Want to learn how to build long-term investing systems that combine cashflow + compounding?
You can join this week’s free Financial Freedom Webinar.
📈 Shubham will share 4 proven strategies from his 12 years of experience — how to plan your portfolio for the next bull run and manage money the smart way. Also get a short free course instantly when you register.
Financially Free™
The Man Who Predicted a 31% Market Crash — And His 3 Rules for Perfect Stock Entry
In October 1987, analyst Stan Weinstein predicted a 31% crash in global markets —
before it even happened.
He wasn’t guessing — he was reading charts.
Stan later wrote one of the most respected books on technical analysis.
Here’s what his method teaches us 👇
🔹 The 3 Rules of a Powerful Breakout
1️⃣ The longer the sideways range, the stronger the breakout.
If a stock trades sideways for weeks or months, that consolidation builds potential energy.
The longer it waits, the stronger the move.
2️⃣ During breakout, price must cross the 200-DMA with heavy volume.
When both price and volume explode past the 200-DMA,
that’s a true bullish signal.
3️⃣ Enter only when price stays above the 200-DMA.
This confirms trend reversal — the stock has shifted from accumulation to breakout phase.
💡 Example — Zen Technologies
Price traded sideways for months.
Breakout came with volume jumping from 1.37M → 14.74M (≈14× rise).
Price stayed consistently above 200-DMA.
Result?
A staggering +1131% return.
📈 Stan’s message:
You don’t need to predict — you just need to read charts right.
⚡ Want to learn how to build long-term investing systems that combine cashflow + compounding?
You can join this week’s free Financial Freedom Webinar.
📈 Shubham will share 4 proven strategies from his 12 years of experience —
how to plan your portfolio for the next bull run and manage money the smart way.
Also get a short free course instantly when you register.
👉 Register here: shorturl.at/8ny8h
⚠️ Important Note:
This post is for educational purposes only.
Actual market performance may differ due to timing, volatility, and macro factors.
🧾 Disclaimer:
This content is for learning only and not investment advice.
Please consult a SEBI-registered financial advisor before investing.
#StanWeinstein #TechnicalAnalysis #StockMarketIndia #BreakoutStrategy #200DMA #VolumeAnalysis #FinancialFreedom #InvestingIndia
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